THE High Court has saved employers an estimated $14 billion in potential back-pay claims after it this week overturned a contentious workplace understanding that a long-serving casual employee was, in fact, permanent and could claim paid leave entitlements.

The decision comes after an appeal made to the High Court after the case was heard before the full Federal Court in WorkPac v Rossato.

The overturning of the Federal Court decision was “a timely reminder” for employers to review their written employment contracts and arrangements to ensure those with casual employees are meeting all the requirements, the Victorian Automotive Chamber of Commerce said in a statement to members.

“This is particularly the case given that in relation to employers with 15 or more employees, the current six-month transitional period that applies in relation to existing casual employees ends on September 26, 2021,” the VACC said.

The VACC said the High Court decision was important “because it reaffirmed that where a written contract of employment clearly provides that the nature of the relationship is casual – and the parties adhere to the terms of the contract – then the employee is a casual employee, regardless of whether the hours subsequently worked by the employee become regular and systematic”.

“Put simply, the High Court decision gives both employers and employees confidence that a ‘deal is a deal’,” it said.

“The High Court decision also complements the new casual employee definition at section 15A of the Fair Work Act (FW Act), which provides that a person is a casual employee if the employer offers (and the person accepts) employment on the basis that there is no firm advance commitment to continuing and indefinite work according to an agreed pattern of work for the person.

“Specifically, the High Court found that a firm advance commitment must be an enforceable commitment.”

The VACC also said that members seeking further information on the casual employee amendments to the FW Act should refer to its previous industrial relations summary published in March.

It said that members who currently employ, or who are looking to employ, casuals are encouraged to contact the VACC’s Workplace Relations team at ir@vacc.com.au or 03 9829 1123 for further advice and assistance – whether in relation to written casual employment contracts, or more generally, how the casual employment amendments directly impact their business.

By Neil Dowling